LS 2nd UT

• Income-expenditure


  Surplus 盈餘 / Deficit 赤字
• Public Finance

  Refers to the government's financial revenue 收入 + expenditure to promote the economic development + enhance economic competitiveness + provide public service and facilities
• The formulation制定 of public finance in HK

  ~Formulatied, Implemented 實施 &Managed by Financial Secretary(Paul Chan) & Decision-making bureaux 局

  ~Financial Secretary shall submit a budget to the Legislative Council 立法會 every year
• Major items of government revenue 收入

  • Tax revenue (direct tax ① - ③ + indirect tax ④- ⑦)
  • Other revenue (public service charge, fines 罰款, land sales)
• Direct taxes


  • Salary tax 薪俸稅 (有收入)
  • Profits tax 利得稅 (公司利潤)
  • Property tax 物業稅 (收租後得益)
• Indirect taxes


  • Rates and governments rent 差餉和地租 (擁有房屋)
  • Stamp duty 印花稅 (轉換財產,租憑,股票交易)
  • Betting duty 博彩稅 (彩票,賽馬,足球博彩)
  • Duties 應課稅品稅項 (酒,煙)
• Major items of government expenditure


  • Daily operation of government departments (salaries of civil servants 公務人員, employees welfare expenses 員工福利費, pensions 退休金)
  • Provision of social welfare (social assistance 社會救助, education, health care)
• Requirements of the Basic Law for government expenditure

  • Achieve a balanced between revenue and expenditure
  • Avoid deficits
  • Keep the budget to match the growth rate of its Gross Domestic Product (GDP) 国内生产总值
• Policy objectives of each fiscal year

  • Alleviate poverty 減緩貧困
  • Care for the elderly
  • Support the disadvantaged
• Use of financial revenue & expenditure

  • Meeting social needs (education, health, social welfare)
  • Re-distributing income
  • Driving for long-term economic development (enhance regional co-operation, invest in infrastructure, promoting diversified economic development, supporting small & medium-sized enterprises)
• Government and citizens in term of public finance

  • Government is entitled to collect taxes from citizens, citizens are responsible for paying taxes regularly
  • Citizens are entitled to enjoy public facilities and services, government is responsible for providing public services, tax exemption and allowance
• Financial revenue & expenditure of the government

  • Meeting social needs
  • Re-distributing income
  • Driving for long-term economic development
• Meeting social needs


  1. Provide education opportunities

  2. Help the grassroots & training talents can match the development trend of a knowledge

  3. Pay medical workers

  4. Provide welfares & subsidizes citizens with financial difficulties to enjoy medical services

  5. Help vulnerable groups to get equal treatment in society
• Re-distributing income


  1. Government transfers wealth belonging to certain groups to vulnerable groups through taxes

  2. Use taxes to implement the CSSA Scheme & provide transportation allowance & public hospitals service

  3. Can benefit vulnerable groups & narrow the gap between rich and poor
• Driving for long-term economic development

  1. Enhance regional co-operation: HKSAR government seizes its geographical advantage & uses fiscal expenditure to enhance the co-operation with Mainland

  2. Invest in infrastructure: government spend lots of money on building infrastructure (e.g. Sha Tin to Central Link)

  3. Promoting diversified economic development: 6 priority industrial that hk has enjoyed obvious advantages

  4. Supporting small & medium-sized enterprises: government want to maintain fair market competition & protect the interests of SMEs
• Government & citizens in term of public finance

  • The government is entitled to collect taxes form citizens and citizens are responsible for paying taxes regularly
  • Citizens are entitled to enjoy public facilities and services, and the government is responsible for providing public services, tax exemption and allowance for citizens